Australian Dollar Falls, While Chinese Yuan Slips 0.1%

Australian Dollar Falls, While Chinese Yuan Slips 0.1%

In Chinese assets, the Australian dollar is popularly used as a proxy for the risk. The Aussie fell 0.19% to $0.6728. The New Zealand dollar dipped 0.25% to $0.6451 per dollar.

The Chinese currency gave up 0.12% to 6.9813 in offshore trading, while the yuan slipped 0.1% to 6.9792 per dollar in the onshore market.

Both New Zealand and Australian dollars have extensive trade ties with China. It includes education, tourism, and commodities, which are especially vulnerable to disruption because of the virus.

Two days ago, the central bank dropped a reference to the chance of future rate cuts in its policy review. Thus, the New Zealand dollar enjoyed a lift. On Thursday, an assistant governor said the central bank has a positive, neutral bias amid the improving domestic demand. Nevertheless, it is open to reviewing that position in case the economic hit from the coronavirus epidemic worsened.

The Australian Dollar

The WHO (World Health Organization) likened the epidemic threat to terrorism. It underscored the anxiety in the financial market about its impact across trade and businesses worldwide.

Fears are growing; the coronavirus outbreak might have a damaging impact on global economies and in the Asian giant. Chinese policymakers are implementing a raft of measures for supporting the economy.

The dollar traded at $1.0872 per euro, elsewhere in currencies. It was close to its most energetic level in more than two years because of growing optimism about the health of the United States economy.

Last week data showed the United States labor market is improving.

Moreover, data showed the eurozone manufacturing output plunged more than forecast in December, boding ill for fourth-quarter domestic product data of zone gross due on Friday. Thus, on Wednesday, the euro wilted.

In Asia, on Thursday, the euro changed hands at 83.92 pence. It was close to its lowest since December 17.

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